• Dot chart of Fed forecasts is beginning of communication evolution (WTF?)
  • QE ending so language in policy needs adjusting
  • Quarterly changes in FOMC rate forecasts are important

Forward guidance, dots, what’s next, coloured smoke over the Federal Reserve building like the Vatican?

  • Justifiable reasons why angst over economy remains
  • Monetary policy cannot solve problems in the labour market
  • Not too concerned with PCE inflation being a bit below 2% target, important to remain committed to Fed 2% price goal